ADT Settles FTC Claim of Deceptive Today Show Appearance

Company Failed to Identify Pitchpeople Had Been Paid3/07/2014 12:43 PM Eastern

By: John Eggerton

Home Security Company ADT has settled Federal Trade Commission charges that it paid spokespeople to demonstrate its Pulse home security/monitoring system on NBC's Today show, as well as other TV and radio programming without revealing they had been compensated.

The FTC said there were a total of 40 TV and radio appearances, as well as blog posts and other material.

ADT has agreed not to misrepresent paid endorsements as independent reviews, but an FTC spokesperson said the commission "did not allege any law violation on the part of the media outlets" that treated the reviews as independent.

“When a paid endorser appears in a news or talk show segment with the host of that program, the relationship with the advertiser must be clearly disclosed," said Jessica Rich, director of the FTC's Consumer Protection Bureau.

According to the complaint ADT "set up media interviews for the endorsers through its public relations firms and booking agents." The FTC said ADT often provided reporters and anchors with suggested questions and b-roll video.

"The paid ADT endorsers were introduced by program hosts as experts in child safety, home security, or technology, usually with no mention of any connection to ADT," the FTC said. For example, in a clip of the Today appearance, the pitchwoman is described as a "national family and safety expert."

"The endorsers sometimes demonstrated child safety, home security, or technology products other than the ADT Pulse, adding to the impression that they were providing an impartial, expert review of the products."

In addition to not misrepresenting paid spokespeople, the settlement means ADT has agreed to disclose clearly and prominently display in advertising any material connection between the endorser and the company.